Mars Inc. to buy Iams, Eukanuba and Natura pet food brands

McLean-based Mars Inc. is taking a bite out of the pet food business. The company has agreed to buy pet food brands Iams, Eukanuba and Natura from Procter & Gamble for $2.9 billion.

Those brands will join Mars Petcare brands that include Pedigree, Whiskas, Banfield and Royal Canin.

"Exiting Pet Care is an important step in our strategy to focus P&G's portfolio on the core businesses where we can create the most value for consumers and shareowners,” A.G. Lafley, P&G's chairman, president and CEO said in a statement. “The transaction creates value for P&G shareowners, and we are confident that the business will thrive at Mars, a leading company in pet care."

The geographic regions included in the acquisition include North America, Latin America and other countries. The agreement includes an option for Mars to acquire the business in several additional countries. Markets not included in the transaction are primarily European countries.

The companies expect to complete the transaction in the second half of 2014. The transaction is subject to regulatory approvals.